Buying or selling a home in San Diego comes with more than just the price on the contract. Closing costs can surprise even seasoned movers if you do not plan ahead. If you want a clear picture of who pays what, typical ranges, and practical ways to save, you are in the right place. This guide breaks down San Diego norms, line items for buyers and sellers, timelines, and tips you can use right away. Let’s dive in.
What closing costs include
Closing costs are the fees, taxes, and prepaids required to finalize a real estate transaction. They cover services like escrow and title, lender charges, inspections, recording fees, and prorations for taxes and HOA dues. You will also see prepaids for items like homeowner’s insurance and impound reserves if your lender requires them.
For planning purposes, buyers often spend about 2% to 5% of the purchase price on closing costs, not including the down payment. Sellers often spend about 6% to 10% of the sale price once you include real estate commissions. Your actual totals depend on your loan type, negotiations, property features like HOA or Mello-Roos, and current local custom.
Who pays what in San Diego
San Diego follows general California practices, but many items are negotiable and can vary by neighborhood and market conditions. A purchase agreement can shift customary responsibilities, so use the following as a common starting point and confirm during negotiations.
- Buyers typically cover lender-related fees, the lender’s title policy, inspections they order, and most prepaids.
- Sellers commonly cover the owner’s title policy in many California transactions, real estate commissions, and their share of escrow fees. Some transfer taxes are often paid by sellers in California, but this is negotiable and should be confirmed for your city and county.
- Escrow fees are often split, but this can vary by agreement.
Local custom can change. Always verify the plan for each line item in the purchase contract and your escrow instructions.
Buyer closing costs: what to expect
Here are the most common buyer costs in San Diego. Not every item applies to every deal.
Loan-related charges
- Origination or processing fee
- Credit report fee and underwriting/admin fees
- Discount points if you choose to buy a lower rate, or lender credits if you accept a slightly higher rate
- Appraisal fee
- Mortgage insurance if applicable to your loan program
Title and escrow
- Lender’s title insurance policy (usually required and paid by buyer)
- Owner’s title policy is negotiable and sometimes paid by the seller
- Escrow or closing fee, often split
- County recording fees for the deed and deed of trust
Inspections and reports
- General home inspection
- Wood-destroying pest inspection if ordered
- Natural Hazard Disclosure report is commonly provided by the seller in California, though buyers may pay for additional reports if needed
Prepaids and reserves
- First year of homeowner’s insurance, typically due at closing
- Property tax prorations based on the closing date
- HOA dues and prorations; some HOAs charge transfer or initial capital contribution fees
- Impound or escrow reserves for taxes and insurance if your lender requires them
Other potential buyer costs
- HOA resale or estoppel documents if not provided by the seller
- Survey or boundary report in special cases
- Private transfer taxes or special district fees if the property is subject to them
Seller closing costs: what to expect
Sellers in San Diego County often see the following line items. Many are negotiable.
- Real estate commissions, commonly the largest single cost
- Escrow or closing fee, often split
- Owner’s title insurance policy in many California transactions
- Payoff of existing loans, liens, or judgments
- Transfer or documentary transfer taxes based on local custom and contract
- Agreed repairs or credits
- HOA transfer fees or required contributions
- Recording fees related to reconveyance or lien releases
- Prorated property taxes up to the day of closing
- Optional items such as a home warranty if you offer one to the buyer
San Diego fees to watch closely
San Diego has a few local wrinkles that can affect your bottom line.
- HOA communities are common. Expect HOA resale documents, transfer or move-in fees, and possible capital contribution fees.
- Some newer communities include Mello-Roos Community Facilities District taxes or other special assessments. These increase annual property taxes and must be disclosed and prorated at closing.
- County and city transfer or documentary taxes, plus recording charges, apply based on jurisdiction. Confirm the current practice with the San Diego County Recorder and your escrow officer.
How to estimate your total before touring
A quick estimate helps you budget accurately and make stronger offers.
Fast steps for buyers
- Set a price range for the neighborhoods you plan to tour.
- Decide on your financing plan, down payment, and whether you might pay points.
- Use a rule of thumb: buyer closing costs of 2% to 5% of the purchase price, plus prepaids like insurance and tax prorations.
- Ask your lender for a sample Loan Estimate for your target price and loan program.
- Ask your buyer’s agent for a sample net sheet that reflects typical San Diego escrow and title fees.
- Budget for inspections and any immediate repairs.
Fast steps for sellers
- Ask your agent for a seller net sheet with estimated commissions, escrow and title fees, recording, transfer taxes, and prorations.
- Confirm whether you will pay the owner’s title policy under current local custom or as negotiated.
- Identify HOA transfer or resale fees and any required disclosures or reports you plan to provide.
- Review your mortgage payoff, any liens, and potential repairs or credits.
Simple example
- Purchase price: 800,000 dollars
- Buyer closing costs at 2% to 5%: 16,000 to 40,000 dollars (does not include down payment)
- Seller closing costs at 6% to 10%: 48,000 to 80,000 dollars (includes commission)
These figures are for planning only. Your lender’s Loan Estimate and your escrow officer’s preliminary settlement statement will give you a clearer number for cash to close.
Ways to reduce or shift closing costs
Closing costs can be managed with the right strategy.
- Negotiate seller credits. If the market allows, ask for a credit to offset some buyer costs.
- Consider lender credits. Accepting a slightly higher rate can reduce upfront cash needed.
- Shop providers. Compare lenders’ origination fees and points. Ask your agent and escrow for competitive title and escrow fee quotes.
- Ask the seller to cover the owner’s title policy or a portion of escrow fees. This is often customary in California, but it remains negotiable.
- Skip optional add-ons. Only pay for inspection extras you truly need.
- Explore first-time buyer assistance. Programs at the state or local level can offer help with down payment and closing costs. Confirm eligibility and current program rules.
- Consider rolling allowed fees into the loan if permitted. This raises the loan balance and monthly payment, so weigh the tradeoffs.
- Use eligible gift funds with proper documentation if your loan program allows it.
Reducing upfront costs can increase your long-term payment or interest expense. Review the numbers with your lender before you decide.
Timeline and required disclosures
Knowing what to expect keeps your closing on track.
- Loan Estimate. Your lender must provide this within three business days of your loan application. It outlines your estimated closing costs and projected cash to close.
- Closing Disclosure. Your lender must issue this at least three business days before closing. It shows the final loan terms and costs.
- Escrow statements. Your escrow company will provide preliminary settlement figures and a final closing statement at funding.
- Seller disclosures. In California, common items include the Transfer Disclosure Statement and Natural Hazard Disclosure, plus any HOA resale package. These may carry fees to obtain and can affect prorations.
Always review your Closing Disclosure and settlement statement carefully, then ask questions early so you have time to resolve any issues.
Common pitfalls to avoid
- Ignoring HOA costs. Transfer fees, move-in fees, or capital contributions can add up. Confirm early when touring HOA properties.
- Overlooking special taxes. Mello-Roos or other assessments change annual tax totals and closing prorations.
- Assuming custom equals contract. Even if something is common in San Diego, your purchase agreement controls who pays what.
- Waiting on estimates. Do not wait to request a Loan Estimate or net sheet. The sooner you have numbers, the better your plan.
- Forgetting prepaids. Insurance, tax prorations, and impounds are real cash items at closing.
Your next steps
- Buyers: request a sample Loan Estimate for your target price and program, and ask for a buyer net sheet that reflects San Diego norms. Confirm whether the home has HOA fees or special assessments.
- Sellers: request a detailed seller net sheet with commissions, escrow and title charges, transfer taxes, and prorations. Identify HOA fees and any required reports.
- Everyone: align on who pays each line item in your contract, then confirm in escrow instructions and your Closing Disclosure.
Ready for a step-by-step plan tailored to your home and neighborhood? Connect with The Joseph Realty Team for a clear estimate, smart negotiation strategies, and a smooth closing across San Diego County.
FAQs
What are typical buyer closing costs in San Diego?
- Buyers often plan for 2% to 5% of the purchase price, plus prepaids like insurance and tax prorations, with exact totals set by your loan, escrow/title fees, and negotiations.
How much do sellers usually pay at closing in San Diego?
- Sellers commonly plan for 6% to 10% of the sale price when commissions are included, plus escrow/title fees, transfer taxes if applicable, and prorated property taxes.
Who pays for the owner’s title insurance policy?
- In many California transactions the seller pays for the owner’s policy, but this is negotiable and should be confirmed in your purchase agreement.
Are transfer taxes paid by the buyer or seller?
- It depends on local custom and what your contract states; many California sellers pay documentary transfer taxes, but you should verify with your escrow officer.
When will I know my exact cash to close?
- Your lender’s Closing Disclosure, issued at least three business days before closing, shows final costs; ask for preliminary estimates early for planning.
What San Diego fees can surprise homebuyers?
- HOA transfer or resale fees, Mello-Roos or other special district assessments, documentary transfer taxes, and variations in escrow and title charges can impact totals.
